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historical cost
(redirected from Historic cost)

   Also found in: Wikipedia, Hutchinson 0.06 sec.
Historical cost
Describes the accounting cost carried in the books for a current cost of the item.

historical cost
The amount of money that was originally used to pay for an asset. A company records assets on a balance sheet at historical cost, which often bears little relation to the market value of the assets after they have been owned several years. Also called original cost.

historical cost
In the Generally Accepted Accounting Principles, the original cost of an asset on a balance sheet. Many assets, particularly illiquid assets, are recorded on a balance sheet according to their historical cost. A notable exception to this rule is the recording of marketable securities, which are recorded according to their market value. The historical cost usually bears little or no relationship to the market value after an asset has been held for several years.


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? Mentioned in ? References in periodicals archive
 
Indeed, many would argue that the ability to evaluate the financial performance of a company is far easier when fair value, rather than historic cost principles, are applied.
Industry standards can then provide the historic cost of this land improvement.
Consider the example of one corporation ("Holding") that acquires the stock of another corporation ("Target") for less than (or more than) the historic cost of Target's assets.
 
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